From lip balm to sneakers, here's how Trump's China tariffs could raise prices
U.S. consumers could start seeing price hikes on a wide variety of goods made in China after the United States began collecting a 10% tariff Tuesday on all Chinese imports, reigniting a trade war between the two countries that’s at risk of accelerating.
U.S. consumers could start seeing price hikes on a wide variety of goods made in China after the United States began collecting a 10% tariff Tuesday on all Chinese imports, reigniting a trade war between the two countries that’s at risk of accelerating.
President Donald Trump said he was instituting the tariffs until China took action to reduce the flow of fentanyl into the United States. China responded by announcing plans to put its own tariffs next week on certain U.S. products, including coal, oil, agricultural machinery and pickup trucks.
While the 10% tariff is smaller than the 60% tariff Trump had threatened during his campaign, investors and industry analysts expect the added cost to have a ripple effect across certain industries that rely heavily on Chinese manufacturing. It has also raised fears among retailers that it could be just the opening salvo in a prolonged tit-for-tat with China.
“There’s just a lot of uncertainty about how to price goods, because it’s a 10% tariff now on top of whatever duties we’re already paying, but what will it be a month from now or two months from now?” said Matt Priest, president of the Footwear Distributors and Retailers of America. Priest said he was hearing a lot of confusion from companies at a trade show he was attending Tuesday in New York.
“It’s almost impossible to confidently cost your goods without knowing where this duty plane will land,” he said.
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